Breaking Down Your Health Care Dollars

Out-of-pocket health costs are just that—the amount of cash you pull out of your pocket to pay for health care beyond what your insurance covers. No one likes unexpected expenses. But you have more control over your costs than you may think.

"There is actually a lot you can do to minimize what you pay out of pocket,” says Joel W. Cohen, director of the division of social and economic research for the U.S. Agency for Healthcare Research and Quality (AHRQ).

What could this mean to you in dollars and cents? Based on a survey by the AHRQ released in December 2005, for every $1,000 spent on out-of-pocket costs:

• $360 goes to prescription drugs. To trim the amount you spend on medications, ask your doctor if a generic drug can be prescribed instead of a costlier brand-name drug.

• $210 goes to the dentist. The cost of a routine dental visit is small compared with the cost of neglecting teeth. By investing in twice-a-year checkups for you and your family, as well as daily brushing and flossing, you can help avoid costly root canals, gum surgery, tooth loss, or dentures.

• $180 goes to the doctor. Read your health plan booklet so you won’t be surprised by a higher price tag for services, seeing specialists, or having tests. To save even more, visit your doctor for preventive screenings. Health problems such as cancer, diabetes, and heart disease are much easier—and cheaper—to treat if you catch them in their earlier stages.

• $60 goes to hospital visits. Get a second opinion before having surgery or expensive tests. For the same reason, don’t go to the hospital emergency room if the doctor’s office is an option.

• $190, the rest of that $1,000, goes to other health care providers and services.

In every case, staying healthy is the best way to keep from digging deep in your pocket. To do so: Don’t smoke, eat healthy foods, be physically active, keep your weight under control, and adopt good safety habits. Every smart choice you make is like money in the bank.